Costly and growing fraud
Patreon’s work connecting fans with creators poses unique challenges, particularly around content, account, and payment fraud. Because their platform relies on the instantaneous transfer of funds—unlike in a traditional e-commerce model where a purchased good can be held while cardholder identity is verified—it is imperative to prevent payment fraud before it occurs. Payment fraud for Patreon comes in the form of either money laundering or traditional credit card fraud—and almost always, there are stolen credit card credentials at play. As their global reach grew, chargebacks and their resulting fees began to rise as well. In addition, manual review of listings and shared content was not keeping up with the rapidly expanding platform community. Patreon, a young and agile company with no fraud prevention measures in place, needed a content abuse and fraud solution that could scale with the business and would ensure the user experience remained seamless.